Dawson Geophysical Company Reports Third Quarter Results MIDLAND,
Texas, July 27 /PRNewswire-FirstCall/ -- Dawson Geophysical Company
(NASDAQ:DWSN) today reported revenues of $31,500,000 for the third
quarter of its 2005 fiscal year ending June 30, 2005 compared to
$17,112,000 in the same quarter of fiscal 2004, an increase of 84
percent. For the nine months ending June 30, revenues were
$79,574,000 compared to $47,790,000 in the 2004 period, an increase
of 66 percent. The Company's revenue growth is due to the rapid
expansion from seven seismic data acquisition crews in June 2004 to
the current level of eleven, price improvements in the markets for
its services and more favorable contract terms with client
companies. Net income for the third quarter of fiscal 2005 was
$3,357,000 ($0.45 per share) compared to $1,989,000 ($0.35 per
share) in the same quarter of fiscal 2004. Earnings for the June
quarter were positively impacted by extremely favorable weather
conditions and crew productivity early in the quarter. Weather
conditions for the remainder of the quarter were less favorable.
The Company has yet to realize the full effect of the eleventh crew
which was placed into service in May. Reflected in the current
quarter's earning per share data is the full effect of the
1,800,000 additional shares issued in a public offering completed
in March of 2005. For the nine months ending June 30, net income
was $7,284,000 ($1.11 per share) compared to $4,494,000 ($0.80 per
share) in the prior year period. The Company's EBITDA for the third
quarter of fiscal 2005 was $7,570,000 as compared to $3,145,000 in
the same quarter of fiscal 2004. Demand for the Company's services
continues at record levels as a result of continued brisk
exploration and development activity by the Company's client base
due to higher oil and gas prices. The Company believes its current
order book is sufficient to maintain operations at full capacity
well into the first quarter of calendar 2006. The Company announced
that its Board of Directors has approved an additional $5,250,000
of capital expenditures bringing the approved capital budget for
fiscal 2005 to $37,250,000. Capital expenditures through the first
three quarters of fiscal 2005 were $34,433,000. While no increase
in the Company's crew count is currently anticipated, the Company
continues to grow and expend capital by upgrading its recording
capacity, expanding the channel count of existing crews, adding to
its energy source fleet, and making technical improvements in all
phases of its operations. These additions present opportunities for
revenue growth and profitability as the Company responds to its
clients desire for higher resolution subsurface images. Dawson
Geophysical Company is the leading provider of U.S. onshore seismic
data acquisition services as measured by the number of active data
acquisition crews. Founded in 1952, Dawson acquires and processes
2-D, 3-D, and multi- component seismic data solely for its clients,
ranging from major oil and gas companies to independent oil and gas
operators as well as providers of multi- client data libraries.
This press release contains information about the Company's EBITDA.
The Company defines EBITDA as net income plus interest expense,
income taxes, depreciation and amortization expense. The Company
uses EBITDA as a supplemental financial measure to assess: * the
financial performance of its assets without regard to financing
methods, capital structures, taxes or historical cost basis; * its
liquidity and operating performance over time in relation to other
companies that own similar assets and that the Company believes
calculate EBITDA in a similar manner; and * the ability of the
Company's assets to generate cash sufficient for the Company to pay
potential interest costs. The Company also understands that such
data are used by investors to assess the Company's performance.
However, the term EBITDA is not defined under generally accepted
accounting principles and EBITDA is not a measure of operating
income, operating performance or liquidity presented in accordance
with generally accepted accounting principles. When assessing the
Company's operating performance or liquidity, investors and others
should not consider this data in isolation or as a substitute for
net income, cash flow from operating activities or other cash flow
data calculated in accordance with generally accepted accounting
principles. In addition, the Company's EBITDA may not be comparable
to EBITDA or similar titled measures utilized by other companies
since such other companies may not calculate EBITDA in the same
manner as the Company. Further, the results presented by EBITDA
cannot be achieved without incurring the costs that the measure
excludes: interest, taxes, depreciation and amortization. A
reconciliation of the Company's EBITDA to its net income is
presented in the table following the text of this press release. In
accordance with the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 1995, Dawson Geophysical
Company cautions that statements in this press release which are
forward-looking and which provide other than historical information
involve risks and uncertainties that may materially affect the
Company's actual results of operations. These risks include, but
are not limited to, dependence upon energy industry spending, the
volatility of oil and gas prices, weather interruptions, the
ability to obtain land access rights of way and the availability of
capital resources. A discussion of these and other factors,
including risks and uncertainties, is set forth in the Company's
Form 10-K for the fiscal year ended September 30, 2004. Dawson
Geophysical Company disclaims any intention or obligation to revise
any forward-looking statements, whether as a result of new
information, future events, or otherwise. STATEMENTS OF OPERATIONS
(Unaudited) Three Months Ended Nine Months Ended June 30, June 30,
2005 2004 2005 2004 Operating revenues $31,500,000 $17,112,000
$79,574,000 $47,790,000 Operating costs: Operating expenses
22,878,000 13,504,000 61,100,000 38,457,000 General and
administrative 1,409,000 648,000 3,192,000 1,867,000 Depreciation
2,387,000 1,156,000 5,519,000 3,381,000 26,674,000 15,308,000
69,811,000 43,705,000 Income from operations 4,826,000 1,804,000
9,763,000 4,085,000 Other income: Interest income 212,000 58,000
335,000 175,000 Interest expense --- --- (65,000) --- Gain (loss)
on disposal of assets 149,000 (1,000) 149,000 (4,000) Gain (loss)
on sale of short-term investments (4,000) (15,000) (4,000) (15,000)
Other --- 143,000 239,000 253,000 Income before income tax
5,183,000 1,989,000 10,417,000 4,494,000 Income tax (expense)
benefit: Current (783,000) --- (1,516,000) --- Deferred (1,043,000)
--- (1,617,000) --- (1,826,000) --- (3,133,000) --- Net income
$3,357,000 $1,989,000 $7,284,000 $4,494,000 Net income per common
share $0.45 $0.36 $1.13 $0.81 Net income per common share-assuming
dilution $0.45 $0.35 $1.11 $0.80 Weighted average equivalent common
shares outstanding 7,445,525 5,584,442 6,446,607 5,535,741 Weighted
average equivalent common shares outstanding- assuming dilution
7,540,963 5,681,372 6,542,479 5,601,703 BALANCE SHEETS June 30,
September 30, 2005 2004 (Unaudited) ASSETS Current assets: Cash and
cash equivalents $5,527,000 $3,587,000 Short-term investments
20,374,000 4,130,000 Accounts receivable, net of allowance for
doubtful accounts of $335,000 in 2005 and $199,000 in 2004
28,186,000 16,979,000 Prepaid expenses and other assets 765,000
440,000 Current deferred tax asset 1,968,000 --- Total current
assets 56,820,000 25,136,000 Deferred tax asset --- 1,648,000
Property, plant and equipment 126,517,000 94,050,000 Less
accumulated depreciation (67,655,000) (64,075,000) Net property,
plant and equipment 58,862,000 29,975,000 $115,682,000 $56,759,000
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts
payable $9,381,000 $3,357,000 Accrued liabilities: Payroll costs
and other taxes 1,603,000 742,000 Other 1,363,000 971,000 Deferred
revenue 2,685,000 1,407,000 Total current liabilities 15,032,000
6,477,000 Deferred tax liability 1,937,000 --- Stockholders'
equity: Preferred stock-par value $1.00 per share; 5,000,000 shares
authorized, none outstanding --- --- Common stock-par value $.33
1/3 per share; 10,000,000 shares authorized, 7,461,794 and
5,633,794 shares issued and outstanding in each period 2,487,000
1,878,000 Additional paid-in capital 80,569,000 39,949,000 Other
comprehensive income, net of tax (110,000) (28,000) Retained
earnings 15,767,000 8,483,000 Total stockholders' equity 98,713,000
50,282,000 $115,682,000 $56,759,000 Non GAAP Financial Numbers:
Reconciliation of EBITDA to Net Income (Unaudited) Three Months
Ended June 30, 2005 2004 (in thousands) Net Income $3,357 $1,989
Depreciation 2,387 1,156 Interest expense --- --- Income tax
(benefit) expense 1,826 --- EBITDA $7,570 $3,145 DATASOURCE: Dawson
Geophysical Company CONTACT: L. Decker Dawson, Chairman and CEO, or
Christina W. Hagan, Executive Vice President and CFO, both of
Dawson Geophysical Company, +1-800-332-9766 Web site:
http://www.dawson3d.com/
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